The Companies Act 2006 - A New Regime for Directors
1st October 2007 marks a watershed for Directors of UK companies. On that date the new Statutory Statement of Directors' Duties, set out in the Companies Act 2006, comes into force. All directors must be aware of these duties as it is inevitable that they will come under increased scrutiny as a result.
Originally intended to be a definitive statement of the law which would be readily accessible and easy to understand, the use of new language and an unusual requirement with regard to its interpretation, means that the opposite may result. A period of uncertainty is almost inevitable while some early cases come before the courts.
It is likely that the new Statement, when combined with provisions elsewhere in the 2006 Act, including a new statutory derivative claims procedure for shareholders, will mean that directors are likely to face an increased risk of litigation – simply from being directors.
We have produced a briefing note which we hope will guide you though this new Statement. In it we highlight key aspects and provide some practical guidance.
We have also produced a briefing note on the changes relating to Electronic Communications to and from Companies, and the main changes in the law relating to the Companies Act 2006.
For further information please contact: Bill Fowler
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